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Futures Trading Strategy for Beginners (Detailed Guide)

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Futures trading is a popular method in the crypto market, where you can bet on whether the price of a coin will rise or fall instead of just buying and holding it—you get the opportunity to profit on both sides, but the risk is high, so trading without the right strategy can be dangerous. Here is a step-by-step strategy that beginners can follow to reduce risk and increase their chances of profit.

1. Market Selection

Don't trade futures on all coins. The safest option is high-volume coins like btc, eth, bnb, sol.

Reasons :

High-volume coins have lower spreads

Less price manipulation

More news coverage

Small market cap coins can suddenly make big movements that will cause your liquidation.

2. Timeframe Selection

Choosing the right timeframe is very important in futures.

Larger timeframe (1h or 4h) ➡ To understand the main trend of the market

Smaller timeframe (15m) ➡ To find specific entry points

Example : If BTC is in an uptrend on the 1-hour chart, then you can take a long entry if the price breaks above EMA 20 on the 15-minute chart.

3. Indicator Setup

On TradingView or Binance charts:

EMA 20 & EMA 50 ➡ To check trend

RSI (14) ➡ To check overbought/oversold

Volume ➡ To see the strength of the movement

Explanation :

EMA 20 above EMA 50 ➡ Uptrend

EMA 20 below EMA 50 ➡ Downtrend

RSI above 70 is overbought, below 30 is oversold

4. Entry Rules

Long Entry :

EMA 20 crosses above EMA 50

RSI between 40-50 (Move Upward from Neutral)

Volume increases

Short Entry :

EMA 20 crosses below EMA 50

RSI between 50-60 (Move Downward from Neutral)

Volume increases

5. Leverage Settings

Safe leverage for beginners is 2x–3x

Do not invest more than 2-5% of capital in a single trade

High leverage means high risk

6. Stop Loss & Take Profit

To control risk :

Stop Loss (SL) : 1.5%-2% below (Long) or above (Short) the entry price

Take Profit (TP) : 1:2 or 1:3 Risk-to-Reward ratio

Example : If you Take 2% risk, then set a profit target of 4%-6%.

7. Check the news

News in futures affect prices very quickly.
Use :

CoinMarketCap

Binance Announcement

When trading on big news, keep your stop loss small or use low leverage.

8. Trade Management

When the trade is in profit, shift your stop loss to breakeven

Don't get greedy and increase your TP, stick to the fixed ratio

Use OCO order if you don't want to sit in front of the screen

Example Trade (Long)

Coin : BTC

Price : $30,000

EMA 20 > EMA 50 (Uptrend)

RSI = 45 (Neutral Zone)

Leverage : 3x

SL = $29,700 (-1%)

TP = $30,600 (+2%)

Risk-to-Reward = 1:2

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Some additional tips

Make a maximum of 2-3 trades per day

Keep a trade journal (date, coin, entry, SL, TP, result)

Don't trade futures on too many coins at once

Don't trade in anger or excitement

Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.

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